In this week’s Business Basics we’re going over what it means to qualify as a foreign corporation. Let’s say you form a corporation or LLC in one state, but you’ll be doing business in another state. This is pretty common for a lot of business owners. All it means is that you may be required to qualify for a foreign qualification. Filing a foreign qualification allows you to legally operate your business in another state other than the state of formation. 

But first, what state should you incorporate in?

Laws and fees governing corporations can vary from state to state. While you are able to form a corporation in any state you choose, most of our customers choose to form their corporation in the state in which they are conducting business. This is typically the most simple and cost effective way to operate your business.

There are, however, special considerations when it comes to Delaware and Nevada.

There are certain circumstances that could make it beneficial to incorporate in a state other than your home state. If you intend to do business in several different states or if your home state has complex laws or high tax rates and filing fees, you may want to consider forming your business in another state. Delaware and Nevada are commonly recognized as attractive business states.

Delaware is recognized as having modern and flexible corporate laws, a business friendly government, and a customer service oriented staff that can process documents and requests much quicker than other states.

Nevada does not charge a state corporate income tax or a personal income tax and allows for a higher level of privacy for a business and its owner’s personal information.

Here’s what you have to do to foreign qualify today:

  • Fill out and submit the Foreign Qualification order form on our website.
  • You’ll find requests for standard contact, billing, and authorization information, plus specific requests regarding home state, foreign state, entity type, director and officer information.
  • We will then forward you all necessary documents for your signature.
  • From there, you have to forward the documents to the state.
  • Once filed with the state, a Certificate of Authority will be mailed to you for your records.

If you have any questions on foreign qualifying, or would like to start your business today, give us a call at 877 692 6772 or visit us at

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